Moody’s slashed Portugal’s credit rating by two notches to A1, citing a deterioration of the country’s debt ratios and weak growth prospects, the ratings agency said Tuesday.

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The action concludes a Moody’s review that started on May 5, and the outlook is now stable, the agency said.

Investors are watching euro-zone economies to see how they address their debt issues as a crisis of confidence has hit the area ever since it emerged that Greece misrepresented its official statistics to make its debt look smaller than it actually was.

Portugal’s debt-to-GDP and debt-to-revenues ratios have risen rapidly in the past two years, Anthony Thomas, vice president and senior analyst in Moody’s Sovereign Risk Group, said in the statement.